An hour. Welcome to the midpoint of intx 2016. We have had a great couple of days so far. We met arianna huffington, we talked with michael powell, we had a conversation with brian roberts. Quite a display he put on about the upcoming olympics and the technology. We have had conversations with john king and jorge ramos. We have celebrated terrific events and programs with cable tv pioneers. Fameable center hall of last night, outstanding. Women in cable, a great lunch. Many other groups. On the marketplace floor, we have discovered the joys and wonders of virtual reality. Of tv everywhere. And the everexpanding content display technology. We have also been immersed in news and information about the internet. And television. And imagine part. Through dozens of Panel Sessions and discussions. It is fitting that all of those developments have led to this afternoons great general session, probably the most disruptive of intx 2016. We are going to get to hear from the people who have disrupted our world with Game Changing technology and services. Fresh from the acquisition of directv, we are going to get a chance to meet at ts john stinky. We will gain insights into the world of the internet with the founder of mashable, pete cashmore. It will be an interesting conversation. And peter cap got is going to introduce us to nigel eccles of faneuil and periscope founder avon by court. Exciting lineup. You will not want to move before we moved to the chairmans reception for an adult beverage or two. To get things rolling, it is my pleasure, indeed, to welcome a. Rue friend of cable and intx the senior media and entertainment correspondence for cnbc and a shining light in news and business and an absolutely stellar journalist. Welcome Julia Roberts than. Hoboorstin. Julia i would like to welcome ano the stage john, ceo of abc entertainment. You have wanted to talk about today. [applause] yesterday, you announced acquisition of quick play. What is this company and how does it fit into entered the at T Entertainment strategy . Not a headline by straightforward. We want to deliver premium content to customers on any device wherever they are. If you get underneath the Details Behind it, 12 years ago, when we started to work into the paytv business, we have decisions to make on platforms and how we did that. A really painful decision to make to walk in and not own your stack of technology to accelerate your entrance into the business. After 12 years, what this represents is we finally have a culmination where we own the entire Technology Stack to deliver services to our endusers. That is really important. Everybody in this room understands it. We have this dynamic now where i think most people that play in this industry will play in a full stack approach. They will be all the way down at the content side working up to the Technology Stack and the Customer Experience and feel really good about the move that this completes for us in making that happen. Described to us how you see at ts approach. You have a unique position. At t has directv. What is the big picture strategy . I was chuckling backstage as they were introducing in the segment, i got put here in the middle of the disruptor discussion. Feel like it is being done to me, and not the other way around. Certainly, our approach to this is we believe that mobility is an important ingredient moving forward. We think the customers will want to do more things on the go. We think that technology is going in a place where mobility will allow them to do many more things on the go. Our desire is to take the premium Entertainment Experience and the great aspects of what people have that emotional connection with, and bring that into our mobility experience. The combination of you have great content mixed in with device specific addressability allows for new business bottles, Better Business models. Lower ad lows, better yields for folks, allow people to take content wherever they want to go. Star to do things like build scalable infrastructure that ensures people arent worried about whether they are exhausting data buckets to do the consumption that they want to do. Also, start to play into the new more fragmented digital forms of entertainment that you see the entire new jens he and millennials adopting that are definitely mobile centric. I think everybody is about Building Audience these days. We want to be in a situation where they find a way to build on to do all the things i just mentioned. To push on advertising. There are different ways to build audience. Our point of your Building Audience is it probably needs to start from a position of strength with premium content that people have a repetitive and emotional tie to and then grow from there. Our belief is when you look at the advertising business, it can be built around that, especially on addressable basis. That is a better place to be in the near term. We are to, this problem is highly different way. More from the scaled, premium content position, have a great cost, a position to be able to work with people who know how to do that and play into that from a position of strength rather than try to come from that from the bottom up. It doesnt mean the bottom up doesnt make sense and it wont be relevant over time. We already have a billiondollar plus advertising business. We will grow it into double digits by starting to apply some of the technology and capabilities that our ip capabilities allow us to bring forward. We like coming out of from that Vantage Point ember working away down. Us a bit about what honor media is. Between at t and some of these assets that they have my crunchy roll or massive. Many people dont realize how huge and powerful they are. We built a great audience and it is coming from the bottom up. These are the newer digital forms of advertising or were able to take a tremendous amount of impressions in the digital environment and started working on ties that. I think both are necessary. You have to work on the down top down with premium. We think that a scale relevant and ready to gate today. We want to have our foot in the bottom up and understand and nine about that. There are segments of the population will be better suited to that. Why we did it with honor media is straightforward. We believe there are certain things, the core of at t does well which is meet the needs of millions of customers on some scratch and Business Models and repeat things over and over again at scale. What we dont do as well is innovate and do small things that sometime the care and feeding and nurturing without putting too much bureaucracy or process on them. It allows us to do that outside of the mothership area it allows that creativity to take root. It allows us to try different Business Models and learn from it. But not do it in a way where it has to be governed by the larger business of at t. I think we have been pretty successful in finding a balance. Julia what is your business when you look like two or three years from now . The marketplace is changing so much and you have your hands in these different businesses in a way, experiencing experiencing with these different products. How do you see at integrating it into the rest of what at t is offering . We would like to find places in the Digital World where we see momentum and attraction. We also want to take opportunities of what we have in the premium world and bring it together was some of that new and emerging stuff and fuse them in a way that is better. I think or you will start to see us do is find the things we are getting traction on with jens he and gen x and the millennials down here and start to bring some premium with it and create new categories where the two are blended together, and use our scale with mobility distribution to try to turbocharge those. I think if we are successful and demonstrate we can do that, there is an opportunity to start pulling those folks who havent moved into Subscription Services into that subscription echo system if we really get that traction. That is what the grand experience experiment is. Julia it sounds like a new type of digital bundle targeting millennials. I dont know if any of us know precisely what that is going to be. The beauty of having Software Distribution platforms and the flexibility of using mobility for distribution allows you to try a lot of Different Things and then moved back from that. There are so many players in this space right now. What about at ts approach is unique . What we understand, customers are being real clear, they love using the products and services, but they dont like the overheads. It needs to be a much simpler, more transparent experience to get the complement of things that they want. Conductivity anywhere, whether they are at home or on the go. The entertainment they can take with them. Yet, what they believe is a good value out of that. One of the things we need to focus on is a great Customer Experience. One that is very transparent so that they know what they are buying. There arent hidden fees, no ups, downs, no extras, and they know the deal is. There is low overhead in getting that done. When you leg of these new softwarebased product, the beauty is they take a lot of overhead out of the provisioning process and the Customer Support process and they play right into that nice, frictionless mobile experience. That is one of the things we need to do well in play into that. Over time, as you have the opportunity to deal with a stack of technology, you can manage ad loads. You can invest in more exclusive and premium content, you can monetize a different ways. Both the subscription and with advertising and play on a different scale than you did before. That is what we have to do better. What are you seeing in terms of big picture trends in industry right now . This afternoon, i talked about i interviewed brian robert and they talked about the need to adapt to consumers. Offer different types of packages. Perhaps more flexible, smaller. What are you seeing . I agree with that. The consumer today, if you think it what theyre looking at, it is not that they are not engaging with the content, the product we are offering, they are just engaging in a different way. They want to do it on their terms instead of sitting down and watching it at an hour a time. They want to watch an entire season over the course of a friday and saturday night. A one latitude to do it in the house and outside the house. Some are looking for different price points. There is no question that the industry fit in self into the premiums side of the price point at the high end and we have left this gap of people who need a starter set to move in. I think of flexibility is a key issue in the way that you can come up with different Business Models and different distributional platforms that start to take costs out of how you deliver these products, that take costs out of the support lifecycle for customers, they are less less cpu intensive. They all play within the Customer Choice and possibility they need. Do you think the starter packages are a gateway drug for getting people to sign up for a full directv package, or you think there is a new generation of consumers who is never going to want to pay for a full cable bundle or satellite tv bundle . I dont the guy want to characterize it as a gateway drug, but we believe there is they need to have a set of training wheels. O have a starter set i believe there will be some never come into the echo system. Today, we have over 20 Million People who arent part of the echo system. Some and not because they dont want to be apart, they cant clear credit checks to get in overhead every cp centric models that require you to have inservice lifes of 14 months before you get payback. I think we will start to see some of this where different sized bundles and different sized offerings allow you to adjust parts of the market that havent brought into todays industrialstrength market. Theyre going to be some who say i do want to be a part of it. I want to be my own curator. I am ok with this fragmented environment. That is going to be ok. If you build the right kind of architecture and platforms, you can be adaptable and fax will. That will be ok because you will reach the different types of packages . To her types of packages or in our case, our goal is to provide connectivity and move tonnage. That is a mainstay of our business. If any connectivity to consume other content and move tonnage, then we can ultimately and back returns on investment of that infrastructure. Who is your biggest competitor for at T Entertainment . I wish i could narrow it down to one. We certainly have the traditional set. We look at what comcast has done with their business and admire what they have done. They have done a great job of building a set of entertainment assets and in distribution platform, but have to look at some of the nontraditional providers like netflix. Y do great things to clearly customers are voting and saying they like that. We have a variety of people coming at us from different angles. That is the beauty of it, it is an intensely competitive industry. Asis kind of a mystery to me to why somebody says there needs to be more accurate active involvement from a Regulatory Institution when there is so much action going on. The fccre criticizing for unlocking the top box proposal . Im just asking why we are needing any additional regulation whether it is on or unlocking the box. Regulatoryre environment. Just a final note. We will be hearing from the ceo of periscope. We have seen facebook make a big push for its Live Streaming video. What does that all mean for you . To have people streaming video on their mobile devices or is a competition . I think it is a great thing the fact that people want to continue to engage and use data and find ways to be more connected, connect more devices at the end of the day is always good for our business. From the dawn of time what we have made our money on is moving a bed around it that around. Our job is to continue to invest in our infrastructure and lower the cost of how people can lower those bids so they can have more applications and opportunities to use applications like periscope and feel good using them. E think that is a good thing our approach to that is just constantly invest to drive cost down. If you look at what is starting to happen now, we are starting to see the dawn of the upstream of consumption. Sended to be all push and and now we have more individual creation, more information being sent up to the cloud. That is great for a Network Business like ours. We do entertainment because it network, notn a necessarily because we think we are great at a net aT Entertainment. Do you think you will continue to see a rise in traffic . I think we will continue to see an increase in traffic and growths growth rates of upstream traffic are outpacing downstream traffic. I think we are just starting to see the front and of the innovation of the upstream dynamic. Unfortunately we are out of time but thank you for joining us. Ceo of at T Entertainment, really appreciate it. [applause] ceo of we have the mashable. Pete, you come from a very different type of business. You build a Digital Content business and about a year ago you started investing heavily in video. And a couple of months ago you announced a Big Partnership with turner. Tell us about this partnership with turner and what brings you here to a room of television and cable executives. Pete mashable is a startup and it is a decade old. The first wave was newspapers and magazines coming online. We were able to build one of the biggest new Media Companies with the biggest distribution and build the future of newspapers and magazines online. I think now it is quite clear there is another revolution happening, how are people going to consume video in the future . Smart Companies Like turner are looking at this and saying that we are aiming at ott. , we think there is some overthetop solution that will work as well. We have a Data Platform called mashable velocity which is about producing content more efficiently and targeting better. Really it is about marrying those trends together. Julia tell us a little bit about velocity. It has been something that is very effective in your Digital Content production throughout the ecosystem from the creation to the distribution. How does it work . Velocitycame up with as a patented algorithm years ago because our readers want to know what is new and next in media and across the web. We saw editors on social media trying to figure out what is going on. At the same time, our readers were saying they do not know just want to know what the most viral thing was, they want to know what is upcoming. Velocity is a predictive algorithm, a learning algorithm. It is looking at things like what a story on mashable will look like versus a competitor. Thehes the hold web whole web and says, this is what you should focus on because there is a lot of life left in the story, and this is what you should not focus on. Itself,create content we obviously use that in distribution as well. Once we put an article out there we can say this is going strong on facebook, lets upgrade it to the main page, or this is something we have to push harder on youtube. Brand content. Ke ideas liken put in what resonated among female millennials looking to buy a car. Ability to look for everything that has worked and we target those people again once you have made the series is powerful, and we found it to be a big advantage in video. Julia how do you expect to apply this to your partnership with turner . The advantages as we have online distribution, snapchat discover, youtube, face